Sensex, Nifty settle flat on profit-booking in recent outperformers

The benchmark indices settled flat on Tuesday as investors booked profits in recent outperformers such as Ambuja Cements and ACC while banks erased gains from the previous session's rally.

Subdued trend seen in Asian markets, as investors searched for the next catalyst following France's presidential election, also capped gains in the domestic market. 

The S&P BSE Sensex ended at 29,933, up 7 points, while the broader Nifty50 settled at 9,316, up 3 points. 

In the broader market, the S&P BSE Smallcap index outperformed to gain 0.5%, while the S&P BSE Midcap index added 0.2%. 

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,477 shares rose and 1,355 shares fell. A total of 166 shares were unchanged.

"With euphoria over French electoral outcome easing, dollar index has strengthened sharply, putting pressure on Indian rupee. This, along with consistent FII selling inequities in last fortnight kept a led on gains, but earnings positivity ensured that value buying emerged on dips,” said Anand James, Chief Market Strategist, Geojit Financial Services.

Sectors and stocks

The Nifty PSU bank index was the leading sectoral loser and fell 1.3% after rising as much as 1.59% in the previous session. State Bank of India shed 1% while Canara Bank, Union Bank and Bank of India slipped anywhere between 2-5%. 

Banks gained on Monday after the government tweaked Banking Regulations Act to give more power to the Reserve Bank of India (RBI) to intervene on behalf of banks.

The S&P BSE Capital Goods index rallied more than 2%, hitting 20-month high, after a strong surge in stocks like ABB India, Siemens, Larsen & Toubro (L&T), CG Power and Industrial Solutions and GE T&D India.

Ambuja Cements fell 1.4% while ACC was down 1%. Both stocks had traded in the green in the previous four sessions.

Bharti Airtel was down nearly 2% at Rs 345 ahead of its March quarter results due later in the day.

Among gainers, Godrej Consumer Products (GCPL) hit a record high of Rs 1,886, up 7% in intra-day trade, after the company reported a strong 212% year-on-year (YoY) jump in its consolidated net profit at Rs 390 crore for the fourth quarter ended March 2017 (Q4FY17). The personal products maker had profit of Rs 125 crore in the same quarter year ago. 

S Chand & Company (S Chand) made its debut on the BSE at Rs 707, a 5.5% premium against its initial public offer (IPO) price of Rs 670 per share. On the National Stock Exchange (NSE), the stock opened at Rs 700, a 4.4% higher against its issue price with a target of Rs 1600. The stock ended at Rs 676, 0.8% higher against its issue price. 

Global markets

European stocks and bond yields rose on Tuesday, boosted by historically low stock market volatility, continuing relief from this weekend's French presidential election and solid corporate earnings.

Europe's index of leading 300 shares was up 0.4% at 1,552 points, Germany's DAX Germany's DAX rose 0.3% France's CAC 40 and Britain's FTSE 100 added 0.4%.

Asian stocks did not perform as well, with China's seventh consecutive loss - the longest losing streak for four years - weighing on the region more broadly.

But overnight, the VIX index of implied volatility on the S&P 500 - the so-called Wall Street "fear gauge" - fell to its lowest intraday level since December 2006. It closed at 9.77, its lowest closing level since December 1993.

US futures pointed to a slightly higher opening on Wall Street, which would see the S&P 500 moving even higher than Monday's record 2,401 points.

(With inputs from Reuters)